Econ 101

I guess Paul Krugman never taught Econ 101

To be a modern Republican in good standing, you have to believe — or pretend to believe — in two miracle cures for whatever ails the economy: more tax cuts for the rich and more drilling for oil...

Here at Redneck Mansion we've been a little busy but this column at Investors.com was just too juicy to ignore:

The economist at the fishwrap newspaper of record defends the president's energy policy of Solyndra, Chevy Volts and algae while dismissing the oil boom on private lands as a small-town hiccup with no impact on price.
 

New York Times columnist and Keynesian economist Paul Krugman asks in a recent column why gas prices are rising if we are in the middle of a domestic oil boom. Doesn't the "drill, baby, drill" crowd claim, he argues, that prices will drop "if only we would stop protecting the environment and let energy companies do whatever they want"?...

...Keynes did not repeal the law of supply and demand, Mr. Krugman, and increased worldwide demand from places like China has helped keep prices up...

...With a straight face, Krugman says "the oil and gas industry doesn't create many jobs," and he dismisses the Bakken shale formation's contribution to North Dakota's 3.2% unemployment rate as "only possible because the whole state has fewer residents than Albany."

Well, the unemployment rate in Albany County in New York state was more than double North Dakota's in December 2011 at 6.7% and at 8.2% for the entire state. Perhaps New York could benefit from an equally vigorous development of the portion of the Marcellus Shale formation...
 
...Krugman opines that "the environmental costs of fracking have been underplayed and ignored."...
 
...Sen. James Inhofe, R-Okla., who was recently called an "oil whore" by that champion of civil discourse, actor and part-time environmentalist Alec Baldwin, notes that since fracking was first commercially applied in Oklahoma in 1949, there has not been a single documented case of contaminated groundwater in more than six decades...
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